Real Estate Developers Told to Work With Civic Bodies as Infrastructure Pressure Grows
New Delhi | September 19, 2026: Real estate projects are increasingly being assessed not just by the homes or commercial spaces they create, but by the pressure they put on a city’s water, sewage, energy and infrastructure systems. At a CII Real Estate Conference in New Delhi, D Thara, Secretary (Department of Capital Development), Ministry of Housing and Urban Affairs (MoHUA), urged developers to work more closely with civic agencies while planning projects.
The message could have direct implications for future housing and commercial developments as cities expand and infrastructure capacity becomes a bigger factor in project planning and approvals.
Developers Asked to Look Beyond the Project Boundary
Thara said every real estate development interacts with the wider urban environment and that developers need to assess the external impact created by construction and occupation.
This includes examining:
- Water demand and the resources affected by a project
- Sewage generation and treatment capacity
- Energy consumption
- Supporting roads and other infrastructure
- The wider environmental impact of development
The approach signals a broader view of project planning, where infrastructure requirements are considered alongside the construction of the property itself.
Rainwater Harvesting and Water Recycling Get More Attention
Thara also asked developers to strengthen measures such as rainwater harvesting, water recycling and sewage treatment.
For large residential and commercial projects, these systems can become an important part of long-term infrastructure planning. Their availability and capacity can also influence how effectively a development integrates with surrounding neighbourhoods.
Why This Matters for Homebuyers and Property Owners
For buyers, infrastructure capacity can be as important as the specifications of an apartment or commercial property.
A project may offer housing, retail or office space, but its long-term usability also depends on access to adequate water, sewage networks, roads and other civic services.
Greater emphasis on these factors could therefore make infrastructure assessments increasingly relevant when buyers compare projects, particularly in fast-growing urban corridors.
Real Estate Sector Seeks Faster and More Integrated Approvals
The CII conference also highlighted the need for faster approvals across India's real estate sector.
Harshvardhan Bansal, chairman, CII Delhi State and co-founder of Unity Group, called for a genuine single-window approval mechanism in which applications can move simultaneously between different authorities instead of developers approaching departments separately.
Industry participants linked faster approvals with lower development delays and, potentially, improved housing affordability.
Affordability Remains a Major Concern
CREDAI-NCR president and Ashiana Housing MD Vishal Gupta said delays in building-plan approvals, RERA registrations and other compliance processes can add to the cost of housing.
He also called for:
- Greater land availability
- Better infrastructure connectivity
- Rationalisation of taxes
- Lower-cost financing
- Faster regulatory approvals
- More predictable development rules
Gupta also said the shortage of skilled labour and quality contractors was increasing construction costs.
He noted that while RERA has improved transparency and trust in the sector, greater ease of doing business is needed to reduce delays and inefficiencies.
Infrastructure and Affordability Are Becoming Linked
Other speakers at the conference pointed to the growing importance of connecting infrastructure planning with housing and real estate development.
Ashwinder R Singh, Chairman, CII Northern Region and Vice Chairman, BCD Group, said affordability needs to be addressed throughout the development value chain through factors such as better FSI, efficient land models, faster approvals, infrastructure and lower capital costs.
Knight Frank India's Gulam Zia also highlighted the opportunities emerging from new economic corridors and cities, while stressing the importance of bringing infrastructure, housing and real estate development together.
What This Could Mean for Future Projects
The discussion points toward a development model in which a project's wider urban impact becomes a more important consideration alongside construction and sales.
For property buyers, this makes it increasingly important to examine not only the apartment or commercial unit itself but also the surrounding infrastructure, water availability, sewage systems, connectivity and planned civic improvements before making a purchase decision.
For developers, closer coordination with municipal agencies and greater attention to resource efficiency could become increasingly important as urban development expands into new growth corridors.